The semiannual financial report released by the well-known LED company Zhen Ming Li revealed that due to the deterioration of the economic environment, the amount of customer orders has generally shrunk. This is just a portrait of the entire domestic LED industry facing the winter cold.
LED's brief spring
LED lighting industry as the country's energy-saving emission reduction support the focus of the Chaoyang industry, since 2008, the country began to vigorously promote efficient lighting products, its market prospects for the industry is optimistic. At that time, the Ministry of Science and Technology of China first proposed the “10 City Million†LED lighting demonstration project and subsidized 30% to 50% of the investment increase in LED lighting compared to traditional lighting. The city that subsequently joined this government plan has soared to the current 42 cities.
As the state's subsidy to the LED industry is not limited to the subsidy of LED street lamps, it also has a high subsidy for the chip production machines upstream of the LED. It is reported that with 1 MOVCD machine, the government subsidy will exceed 3 million yuan.
So almost all of the traditional lighting companies have turned to investment in the LED industry. Zhen Mingli has also joined the tide of investment. In the first half of this year alone, it received domestic government subsidies of 43.1 million yuan. Nineteen MOCVD equipments (LED epitaxial wafers production equipment) currently owned by Neo-Neon are all put into production, and the output of LED epitaxial wafers is as high as 55,000 pieces per month.
It is reported that in order to complete the street lights for LED lights, local governments have invested heavily. In addition to the huge amount of orders for Sanan Optoelectronics Co., Ltd., Wuhu City Government has more than 500 million yuan in procurement subsidies. Shenzhen proposes to participate in government investment projects LED demonstration project companies, according to the price of lamps and lanterns to give a 10% subsidy, and discount interest for 3 years, to bear the enterprise investment projects LED application demonstration projects, according to 30% of the price of LED lamps to give subsidies .
But this investment frenzy does not mean that domestic LED companies already have sufficient technology reserves and market channels.
An unnamed researcher at the Chinese Academy of Social Sciences said that now domestic households basically use ordinary fluorescent lamps, and rarely use incandescent lamps of more than 60 watts, so the elimination of incandescent lamps to promote the development of LED lighting industry is just an illusory LED market expectations. . As for the LED lighting products that are heavily subsidized by the government, they are only a few large LED companies. But now the whole industry is crazy to invest in LED lighting industry.
It is reported that the domestic LED industry shows that the industrial resources do not gather, the company is small and scattered, and the degree of concentration is not high. Numerous companies have repeated low-level construction. Due to the deteriorating market environment, LED customer orders have generally shrunk. The LED production capacity is obviously oversupply, and the market price is rapidly falling.
Integration soon
Faced with the disorderly investment and redundant construction of the domestic LED industry, Li Jinyun, chief semiconductor lighting expert and director of the Semiconductor Institute of the Chinese Academy of Sciences, once pointed out that the large-scale and disorderly investment in the LED industry will not last long. When the entire industry develops to a certain degree At the stage, the domestic semiconductor lighting industry will inevitably be reshuffled. In the next three years, this industry will inevitably have a group of outstanding technologically advanced enterprises to emerge and become leaders in the LED industry.
At present, for the good market prospects, the domestic investment in the LED industry has an annual growth of more than 30%. However, there are serious eager success stories in the entire industry. Although many companies have invested heavily in the LED industry, there are very few companies that have seriously focused on engaging in LED product technology R&D. Many companies are only satisfied with purchasing advanced equipment to make a foundry company in the packaging industry. , Earn a meager contract fee, and the bulk of the profits are given.
In fact, LED lighting is a key industry in energy conservation and emission reduction industries. Its industrial development not only involves basic materials and chip technology, but also involves fields such as optics, electricity, heat, chemistry, and equipment. It is a typical multidisciplinary integration system. engineering. Some domestic packaging enterprises engaged in the production of LED products may use epoxy resin for Taiwan, silicone for the United States, fluorescent powder for Japanese companies, and the packaging structure to mimic the Philips Lumileds or tax division or OSRAM. The industry chain of the entire industry is relatively long.
Although the domestic LED industry faces various difficulties, LED lighting products have excellent energy-saving effects and long lifespan. Not only does China have a large number of companies investing in LED, but foreign giants Panasonic and Philips also intend to occupy leading and strong positions in the Chinese market and international market. Matsushita Electric Co., Ltd. was launched in 2015 to account for 10% of the global market share in the global market scale of 2.6 trillion yen.
Now the domestic LED industry has entered a critical period of development, technology upgrade is inevitable. After the first two years of large-scale expansion, this year's chip oversupply, prices fell significantly, and the application market has not really opened, LED companies generally reduce profits, the industry will enter the shuffle early.
Vertical integration has become an industry consensus. Wu Shenjun, managing director of Jinshajiang Venture Capital, believes that the LED industry vertical integration, who is the winner, is the future of GE. At present, solving the contradiction between customer's individualized demand and large-scale production is the challenge that LED industry must face. Only by relying on capital bonds and industrial integration can local companies with independent brands and international competitiveness emerge in LED reshuffling.
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